Oil prices ticked up on Thursday following a sell-off triggered by the U.S. presidential election, as risks to oil supply from a Trump presidency and a hurricane building in the Gulf Coast outweighed a stronger dollar and lower crude imports in top importer China.
Besides the surging dollar weighing on commodity prices, including oil, a Trump presidency could see policies that may further pressure the Chinese economy, hence weakening demand, said independent analyst Tina Teng, as China is the world’s top importer of crude oil.
Oil prices had been supported by Sunday’s announcement from the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, to push back a production hike by a month from December as weak demand and rising non-OPEC supply depress markets.
Particular focus is on the seven battleground states that are likely to decide the direction of the election. Recent polls showed Harris had a strong base in female supporters, while Trump was mostly favored by young white men.
Oil prices rose on Thursday, extending the previous day’s rally, driven by optimism over U.S. fuel demand following an unexpected drop in crude and gasoline inventories, while reports that OPEC+ may delay a planned output increase offered support.
Gold prices hit a record high in Asian trade on Wednesday as safe haven demand was boosted by increased political uncertainty in the U.S. and Japan, as well as anticipation of more cues on interest rates.
Gold prices rose in Asian trade on Tuesday, coming close to record highs as the run-up to the 2024 presidential election and uncertainty before upcoming data prints kept safe haven demand in play.
Concerns over Israel’s attack on Iran- over an early-October strike- had been a key point of uncertainty for markets, especially on fears that any damage to Iran’s oil or nuclear infrastructure would mark a dire escalation in the conflict.
Oil prices nudged higher on Friday and are on track for a weekly gain of more than 1%, as tensions in the world’s top oil-producing region, the Middle East, and a restart in Gaza ceasefire talks in the coming days kept traders on edge.
Gold prices rose slightly in Asian trade on Thursday, but were nursing a tumble from record highs as anxiety over the U.S. election and a shifting outlook for interest rates favored the dollar.
